REIT payouts and gains do not all get taxed the same way, which trips people up. A REIT's distribution can be a mix of interest, dividend, and return of capital, and each part is treated differently in your hands, so your payout is not simply tax-free income. On top of that, when you sell the units you may have capital gains, taxed based on how long you held them, the same short-term versus long-term split that applies to listed securities. Because a single distribution can have several components, the tax can be fiddly, and the rules here have changed more than once in recent years. Do not plan around a number you saw in an old article. Pull your annual statement, and confirm the current treatment of both the payouts and any gains with a CA before you file, since rates and rules change.
4 resources, 4 India-specific, 4 link-checked.
The India reference on short vs long term capital gains, holding periods, and rates for equity, funds, and property, so you know the tax before you sell.
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Open cleartax.in →A practical India-first reference for keeping personal and company finances (and their tax) cleanly separate.
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Open cleartax.in →What a REIT is, how it works in India, and why it gives property exposure with far more liquidity than a flat.
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Open cleartax.in →The tax detail on REIT and InvIT payouts and gains, so you know what you actually keep before you invest.
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